Yeah, I had assumed this was only related to ALG faction reputation.
Turns out all Bretonian, Gallic, and Kusari corporations, as well as IMG, have mutual positive reputation with both Federalists and Imperial Rheinland lawfuls.
Until this is fixed you should consider getting a Federalist bribe at one of these locations:
Edit: Nevermind. There is a far more obvious rep issue causing this lmao